ISA 705 (2)

Question 1

What are the main characteristics of modified opinion?

Answer 1

Due to insufficient appropriate evidence

Due to material misstatement

Question 2

What is due to insufficient appropriate evidence>

Answer 2

Evidence which should be available to the auditor which is not available

Question 3

Example of evidence which should be available to auditor but is not available? (accounting)

Answer 3

Inadequate accounting records/records lost or destroyed

Question 4

Example of evidence which should be available to auditor but is not available? (appointed)

Answer 4

Auditor appointed after period end

Question 5

Example of evidence which should be available to auditor but is not available? (management evidence)

Answer 5

Management prevents the auditor from requesting/obtaining audit evidence

Question 6

Characteristics of due to material misstatement (appropriateness application)

Answer 6

The appropriateness or application of selected accounting policies

Question 7

Characteristics of due to material misstatement (appropriateness disclosures)

Answer 7

The appropriateness or adequacy of disclosures in the FS

Question 8

Due to insufficient appropriate evidence (1st option)

Answer 8

Material but not pervasive => Qualified opinion

Question 9

Due to insufficient appropriate evidence (2nd option)

Answer 9

Material and pervasive => Disclaimer of opinion

Question 10

Due to material misstatement (1st opinion)

Answer 10

Material but not pervasive => Qualified opinion

Question 11

Due to material misstatement (2nd opinion)

Answer 11

Material and pervasive => Adverse opinion “The FS do not present fairly”